The North Carolina State University Endowment Fund has signed a $78 million, 50-year timber deed with the $4.4 billion Resource Management Services on the state-owned Hofmann Forest.
The investment is intended to bring in about $3 million in annual income for the university’s College of Natural Resources.
“The consistent annual funds replace variable yearly income previously generated by the Foundation’s management of the forest, enabling the college to better plan for and utilise resources to benefit its educational mission,” according to an NCSU Endowment Fund press release.
The deed gives Resource Management Service the right to grow, harvest and replant timber on 54,334 acres of endowment-owned timberland. However, the forest will work under sustainable certification, and the majority of the 79,000 acre forest in eastern North Carolina will remain undeveloped, according to the fund, “providing clear benefits for the military [which uses the forest for training] and economic prosperity”.
“This new agreement ensures the sustainability of the timberland for the long term,” said NC State chancellor Randy Woodson. “It respects the needs of the military and is consistent with long-term economic development goals for eastern North Carolina. It’s a win for the university, the timber deed buyer and the community.”
Resource Management Services is a global timberland investment manager and a registered investment advisor managing $4.4 billion in timberlands for retirement plans, endowments, foundations and other financial institutions.